Examples of discount bonds include ________.
A) Treasury bills
B) corporate bonds
C) coupon bonds
D) municipal bonds

Question

Quizplus · Accepted Answer

Discount bonds are those that are sold at a price lower than their face value, and do not pay any periodic interest (or coupon). Treasury bills are a common example of discount bonds issued by the US government. Corporate bonds, municipal bonds, and coupon bonds pay periodic interest and may be sold at a premium or discount depending on prevailing interest rates.

Examples of Discount Bonds Include ________